Presented By:
Kevin Thomas
Jon Fox
Scott Bemiss
South Africa Background
• Dutch traders discovered what is now Cape Town
in 1652
• Discovered Natural Resources
• Dutch and British fought in Boers War
• National Party came into power in 1948 and
voted to institute apartheid
South Africa Background
• In 1963 Nelson Mandela
was arrested and sentenced
to life in prison
• Apartheid lasted until 1994
when the African National
Conference (ANC) came into
power
• Mandela was released from
Prison in 1991 and was later
elected President of ANC
South Africa
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49 Million people -25th largest
Mostly subtropical climate
Severe problem with HIV/Aids
Races
– 79 Black Africans
– 9.6% Whites
– 8.9% other
– 2.5% Indian/Asian
South Africa
• Gross National Product
– $224 Billion
– Ranks 28th in the world
• Income
– Equates to $5,800 on the purchasing power index
– Ranks 97 in the world
South Africa Religion
• Religion
– 36% Christian
– 11.1 Zion Christian
– 8.2% Pentecostal/Charismatic
– 7.1% Catholic
– 6.8% Methodist
– 6.7% Dutch Reformed
– Others including Muslim
South Africa
• Language
– Afrikaans
– Sepedi
– English
– Setswana
– Sesotho
– Xitsonga
South Africa
• Cuisine
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–
–
–
–
–
Fried caterpillars
Crocodile sirloins
Sheep heads
Biltong
Bobotie
International Cuisine
available
South Africa
• Sport
– Rugby
– Football
– Cricket
South Africa
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Hofstede
Power Distance index- Ranks 49th
Individual Index- Ranks 19th
Masculinity index- Ranks 17th
Uncertain Avoidance Index 58th
Political Climate
• Should reflect the relative importance of the government and legal
system.
– Provide a context within which individuals and corporations understand their
relationship to the political system
• Multiparty parliamentary democracy (1994)
• Build increased participation of stakeholders and the public in policy
formation
– Pushed for policies aimed at sustainable development rather than those
serving narrow group interests
• Current political climate reinforces development and separation
from apartheid
Legal Climate
• Refers to the country’s laws, courts, practices, and legal customs
• Becoming more relaxed and internationally focused
• Common-law system and the South African Constitution seek to
establish South Africa as a prime business center and secure
operating partner
– Commerce, labor, and maritime issues
– Competitive policy, copyrights, patents, trademarks, and dispute resolution
– Commercial rights, obligations, and the sanctity of contract
Regulatory Climate
• Agencies that enforce laws or set guidelines for conducting business
both inside and outside the country
• World Trade Organization (WTO)
– Address issues of price control, import and export trade practices,
international competition, and collective bargaining
• South Africa joined the WTO in 1995
– Since that time:
• Reduced tariffs
• Phased out non-tariff barriers
• Lowered import restrictions
• Most goods can be imported in South Africa with very little restrictions
Regulatory Climate
(Cont.)
• Sought to develop further market accessibility
– Established free trade agreements with members of the EU and SADC
– Africa Growth and Opportunity Act
– Possible free trade relations with the U.S. India, China, Nigeria, EFTA, and
Mercosur
• Offer tax breaks and money allowances to organizations interested
making industrial investments in the country
– R5-billion for large corporations
– R5-million for small manufacturing companies
– attract companies promoting energy efficiency, skills development, and job
creation
THE SOUTH AFRICAN 3,000 KILOMETER COAST HAS WHITE SANDY
BEACHES THAT ARE REMINISCENT OF THE FLORIDA KEYS COAST LINE.
The inland region of the Cape province is
ideal for lush olive orchards and wine
lands.
South African Currency
Exchange Rates
The South African currency is
the Rand (R) and is divided
into 100 cents like American
Currency.
The exchange rate is subject to
daily fluctuations, but
currently about $1=R8
Pricing For Everyday Items
• A sandwich costs R12,
about $1.50.
• Bottle of Beer costs R12,
about $1.50
• A glass of wine R14-R20,
about $1.75 -$2.50
• Daily Newspaper (Sunday
Independent) R5.50, about
$0.65
Accessibility is the key to open the
global market.
South Africa has six major industrial segments that
constitute the country's manufacturing sector.
Major Industries in South Africa
Mining
Textiles
Chemicals
Automotive
Agriculture
Electronics
The United States’ population is 6.27 times that of
South Africa’s population.
Population
United States 307,560,326
South Africa
49,000,000
A Comparison of Ethnic Groups
United States
African American
Caucasian
Asian
Other race
South Africa
Black Africans
White Africans
Asian
Other race
A comparison of national cultures to assist in global
business.
100
80
60
United States
40
South Africa
20
South Africa
United States
0
PDI
IDV
MAS
UAI
Business Etiquette in Urban
South Africa
 Western dress is typical in the urban areas.
 Formal dress during business ventures is expected.
 Appointments should be made at 9:00am, or later.
Distribution of gifts is not custom in South African business. If a gift is
given, you should use both hands or just the right hand to give the gift.
Greetings are like the traditional western hand shake ,however different
ethnic groups may have their own version.
 There is not a proper way to exchange business cards.
 Business meetings can be held over lunch, or dinner in fine restaurants.
 Be prepared to indulge in a long business meeting over lunch or dinner.
South African dress may be formal, but their business dealings are much
more casual.
Works Cited
Green, Mark, and Warren J. Keegan. Global Marketing (5th Edition). Alexandria, VA: Prentice Hall, 2007.
"Political Environment." National State of the Environment Report - South Africa. 19 Sep. 2009
<www.ext.grida.no/soesa/nsoer/issues/politic/index.htm>.
"South Africa's Trade Relations." South Africa's Official Gateway-Investment, Travel, Country Information-SouthAfrica.info. 19 Sep. 2009
<http://www.southafrica.info/business/trade/relations/traderelations.htm>.
"South Africa: Open for Business - SouthAfrica.info." South Africa's Official Gateway-Investment, Travel, Country InformationSouthAfrica.info. 19 Sep. 2009 <http://www.southafrica.info/business/investing/open.htm#environment>.
"Tax breaks for Big Investment Projects." South Africa's Official Gateway-Investment, Travel, Country Information-SouthAfrica.info.
19 Sep. 2009 <http://www.southafrica.info/business/investing/incentives/industrial-110309.htm>.